Sam Altman-backed Opendoor exits India, lays off 250 employees
What's the story
US-based real estate technology company Opendoor has announced its decision to shut down operations in India. The closure will affect nearly 250 employees working for the company in the country. Kaz Nejatian, CEO of Opendoor, said the move is part of a larger restructuring effort under the company's "Opendoor 2.0" strategy. The plan aims to simplify operations, increase AI-driven workflows, and bring customer-facing functions closer to its core US market.
Job relocation
Jobs relocated back to the US
In his memo, Nejatian said that some jobs have already been relocated back to the US. He added, "Today, we are finalizing bringing these roles closer to our customers in America and beginning the process of winding down our India-based operations." The CEO clarified that this decision is not a reflection of employee performance but rather an operational necessity.
Tech transition
AI integration leads to India exit
Nejatian explained that Opendoor had previously relied on a large India-based workforce for manual processes across fragmented systems. However, with these systems becoming more integrated and AI-enabled, the company thinks remaining operational work is best handled by smaller teams located closer to customers in the US. The affected employees will be provided severance pay, outplacement services and transition support during this difficult change.
Strategic outlook
Opendoor backed by major investors
Despite the layoffs, Nejatian said Opendoor is in a strong position and its overall business strategy remains unchanged. The company expects to emerge from this restructuring with a leaner workforce but greater productivity. Opendoor is backed by prominent investors such as Sam Altman, Khosla Ventures, General Atlantic, Andreessen Horowitz, and SoftBank Vision Fund. It went public in 2020 through a merger with a special purpose acquisition company (SPAC).